MUMBAI (Commodity Online): Steel industry in India is on a song now with more and more investments flocking to the country.

After multi-national firms like Posco and ArcelorMittal unveiled their plans to set up shop in India, Bhushan Power and Steel Ltd (BPSL) announced its plans to set up a cold rolling mill complex with a capacity of three lakh tonnes in the western region of the country at an initial investment of Rs 800-1,000 crore.

The company said it will set up a cold rolling mill complex that will have a production capacity of three lakh tonnes per annum of hot roll coils, either in Gujarat or Maharashtra. The company is in talks with both state governments for acquiring land. As soon as the land is acquired, it will start construction. The initial investment will be around Rs 800-1,000 crore.

The plant will be commissioned by 2012. The final product (hot roll coils) from the plant would be supplied to automotive and construction industries.

The complex, to be set up over 100 acres, will house a cold rolling mill, a pickling line, a galvanising line and other equipment.

The steel major has signed a memorandum of understanding (MoU) with Belgium-based engineering group CMI FPE for design and supply.

CMI FPE has also designed BPSL's cold rolling mill unit in Orissa's Jharsuguda district, which has a capacity of 1.5 million tonnes per annum.

The company will be expanding the capacity of the Orissa plant to 2.5 million tonnes by March next at a further investment of Rs 3,000 crore.

BPSL is also mulling an initial public offering (IPO) next year.